1 National Cranberry Cooperative
A business case report by A.Chhatre, J. Parkinson, Parkinson, A. Sivaraman, M. Thiruvarasu
Introduction and issue statement National National Cranber Cranberry ry Cooperat Cooperative ive (NCC) (NCC) is an organiza organization tion,, formed formed and owned owned by grow grower ers s of cran cranbe berrries ries,, to proc proces ess s and and to mark market et thei theirr prod produc uce e !hr !hrough ough a "#eceiving $lant % 1 (#$1)&, it processes "dry& and "wet& berries to prepare them for process fruit products (for e'ample, uice, canned, frozen berries etc) recent review of last fall&s operations at #$1 by *uperintendent and co+op members has identied following issues -ven after installing a . th /iwanee dumper at #$1, •
!he waiting time to unload at receiving receiving is too long and inconsistent inconsistent 0nce started, receiving is a to 2 minute process, but the growers are upset as their leased trucks with hired drivers are sitting idle for unknown periods of
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time 0vertime at the plant is out of control !he berry grading grading process process between numbers numbers 34 and 5 berries is not accurate 6henever there is a close comparison as to whether a load is 34 or 5, the chie chieff ber berry recei eceive verr usua usuall lly y grad grades es it a 5 In 17 177. 7. the the numb number er 5 berr berry y premium was 81.9 and was paid on about :.9,999 bbls It was found that when the berries were used, only about half of them were number 5 !his is a
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considerable loss in terms of price paid !here is not enough capacity for wet berries !here need to be more holding bins
;ollowing business case discusses measures that can be adopted to cut wait times for better serving of our growers, to help decide e
NCC $rocess nalysis Process Flow Diagram
3 National Cranberry Cooperative
A business case report by A.Chhatre, J. Parkinson, Parkinson, A. Sivaraman, M. Thiruvarasu !he process =ow diagram of the process fruit operation at NCC is as shown on the ne't page
5 National Cranberry Cooperative
A business case report by A.Chhatre, J. Parkinson, Parkinson, A. Sivaraman, M. Thiruvarasu
: National Cranberry Cooperative
A business case report by A.Chhatre, J. Parkinson, Parkinson, A. Sivaraman, M. Thiruvarasu
Capacity calculation Capacity of each process process step is calculated in barrels per hour (bbls>hr) $lease refer appendi' page for detailed calculations
#eceiving
AechaBng
Arying
3 units 5999 bbls>hr
5 dryers 99 bbls>hr *eparator
. dumpers 1000
5 lines 1399bbls>hr Aestoning
AechaBng
5 units
1 unit 1.99 bbls>hr
Bottleneck Bottlen eck identifcation :.99 bbls>hr
It was observed that on a peak harvest day #$1 receives 12,999 barrels of berries of which 9? are wet harvested and 59? are dry If we assume that the trucks arrive unif unifor orml mly y over over a peri period od of 13 hour hours, s, the the bott bottle lene neck ck coul could d be iden identi tie ed d by calculating the implied utilization@
Process Step
Calculations
#mplie $tili%ation
#eceiving (dry and wet
(Deman!Capacity" 1.99>5999
(#n Percenta&e" .9?
berries) AechaBng (wet berries) Arying (wet berries) Aestoning (dry berries) AechaBng (dry berries) *eparator
19.9>5999 19.9>99 :.9>:.99 :.9>1.99 1.99>1399
5.? 1.? 19? 59? 13.?
#t is evie evient nt 'rom 'rom the above above calcu calculat lation ions s that that here here the bottlene bottleneck ck is Dryin& process 'or )et berries* )ith +- implie utili%ation at a capacity o' /00 bbls!hr.
Processing time on a peak day !he peak day processing processing time time can be calculated calculated as,
. National Cranberry Cooperative
A business case report by A.Chhatre, J. Parkinson, Parkinson, A. Sivaraman, M. Thiruvarasu •
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;low rate D Einimum FAemand, $rocess CapacityG o t a capacity of 99 bbls>hr H demand of 19.9 bbls>hr, the =ow rate D 99 bbls>hr o ence, Cycle time D 1>=ow rate D 1>99 hr>bbls !ime to produce produce 1399 barrels of wet berries D !ime through empty system J( Knits> ;low rate) o !ime through through empty system system D % of steps L cycle time D :>99 o !ime to produce 1399 barrels of wet berries D :>99 J 1399>99 D 3199 MD 31 hrs
2enc 2ence, e, on a peak peak ay ay it )o )oul ul tak take 3+ hrs hrs to proc proces ess s +400 +4000 0 bbls bbls o' berries. Assumin& that the process starts at .00 AM, it )ill continue until 5.00 AM the ne6t ay )ith continuous operations.
Unloading and waiting time or trucks •
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t this =ow rate, the number of barrels of berries processed in 13 hrs D 13 L 99 D 399 bbls>hr !he total wet berries berries coming coming in for 13 hrs D 12999 L 9 D 1399 bbls bbls !he inventory accumulated accumulated D 1399 1399 399 D .:99 bbls Now, the holding bins for wet berries have a capacity of 5399 barrels, hence .:99+5399 D 3399 bbls of berries will be waiting in trucks after 99 $E Kntil the holding bins are emptied for the remaining 3399 barrels, the trucks would
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continue to wait 6ith the =ow rate of 99 bbls>hr, time taken to free up these 3399 barrelsD 3399>99 D 5 hrs
Assumin& every batch o' trucks arrive simultaneously, the last truck )oul arrive at pm an )ait 1./ hours an unloa at +0750 pm.
$roposed $r oposed changes Ad d on e dr y er It is evident from the above calculations that drying wet berries is a bottleneck ddition of one dryer would be benecial as shown in these calculations • •
0ne dryer addition will change =ow rate to, : L 399 D 299 bbls>hr In 13 hours, number of barrels processed D 13 L 299D 799 bbls
National Cranberry Cooperative
A business case report by A.Chhatre, J. Parkinson, Parkinson, A. Sivaraman, M. Thiruvarasu ccumulated Inventory Inventory D 1399+799 D 5999 bbls s the holding bin capacity is 5399 bbls, it will accommodate the accumulated •
inventory !his will resolve issue with waiting of trucks !he processing processing time now becomes (:>299) J (1399>299) D 1.2 hrs !his is a reduc reductio tion n of . hours hours over over 31 hour hours s !his !his helps helps reduc reducin ing g overt overtime ime paymen payments ts to workers point to note is the cost of the new dryer is 89,999
Ad d h o ld ldii ng b in s Oet us calculate impact of converting holding bins 1+1 from holding ust dry berries to dry as well as wet berries •
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Number of holding bins re3.9 D 22 MD 7 bins !he cost re
Ad d a li gh t me t e r sy st e m or co lo r gr ad in g In 177., NCC lost 1. L :.9,999>3 D 855,.99 on premium due to shortcomings in color grading process process new light meter system installation that costs 8:9,999 with an additional full time skilled operator will help drastically reduce this loss
*ummary In conclusion, 4y adding one dryer instead of the holding bins, we would solve the •
problem of the trucks waiting and also reduces the overtime costs which would not be possible by ust increasing the number of holding •
bins In addition to the dryer, the light meter system would reduce losses incurred by paying e'tra premium
ppendi' 8eceivin&7 lthough the berries in the truck are sampled for weighing and color coding we shall tak take the the /iwa /iwane nee e dump dumper ers s as the the main main e
!ime taken taken to empty 1 truck truck at /iwanee dumper@ dumper@ to 2 min min verage !ime per truck@ . min Number of trucks per hour by . dumpers D .L9L.D :9 Capacity in barrels per hour D :9 L . D 1000 bbls!hr
9et Processin&
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AechaBng@ Capacity of 3 units D 3 L 1.99 D 5999 bbls>hr Arying@ Capacity of 5 units D 5 L 399 D 99 bbls>hr
Dry Processin& • •
Aestoning@ Capacity of 5 destoning units D 5 L 1.99 D :.99 bbls>hr AechaBng@ Capacity of 1 dechaBng unit D 1 L 1.99 D 1.99 bbls>hr
Separators •
Capacity of 5 line separators with average eBciency of :99 bbls>hr D 5L:99 D 1399 bbls>hr
